Sounds like you want to pay down $250,000 of the loan so you have it available in redraw. If there are no splits then it will be a mixed purpose loan once you redraw.

Assuming you split it before redraw, the loan will be mixed between IP 1 and IP2. 150/250th will be deductible against IP 1 and 100/250 will be deductible against IP2. Assuming no further redraws.

Click to expand...

thanks @Terry_w I have split it but I was thinking if I could use the other 250k in offset for say I did another ip purchase to split again hence wondering is it easier to split 3 ways or can I adjust the amounts? Or can use the funds in withdraw to fund 2 ip purchases.

Just read your ideal loan structure - I'm guessing you could fund several deposits from the new loan secured against another property - so long as they were deposits for IPs only and not a PPR or future PPR?

Just read your ideal loan structure - I'm guessing you could fund several deposits from the new loan secured against another property - so long as they were deposits for IPs only and not a PPR or future PPR?

Click to expand...

You can fund lots of deposits, but make sure you keep a spreadsheet to keep track of how much was used for each property, and split the loan before repaying any of the debts, for eg when selling a property. It gets complex when funds are used to repay the loan, especially if you want the funds to pay off a certain property.

During this time, a lot of you will look to landlord insurance to recoup costs and cover losses. But will your rental be protected? Our FAQs answer these questions to help you better understand how EBM RentCover policies respond during this time.

Not all tax advisers are property focussed specialists and DIY errors will always cost you. We know property taxes and will advise and get it right. Even a second opinion. Contact us for an obligation free initial consult (conditions apply).